SPX had a pretty narrow range bound day today. Today featured a little bit of everything. In the morning we had a failed sell off that quickly recovered and rallied, and then the rally faded and SPX sold off again into the close.

The more important take away from today is that SPX managed to close below 7500, which for the short term could be seen as a bearish sign.

The daily chart has somewhat of an indecisive candle, with a slightly bearish leaning bias. I previous wrote about how the daily candles were in a trend of each one breaking the high of the previous day, and that trend did continue today. There is some divergence between the daily chart and the shorter timeframe charts.

On the daily chart, we manage to keep making higher highs. It actually looks pretty clean, with the top wick of each candle pushing higher than the last one. But when you zoom in, the chart is actually a choppy mess.

Yesterday we looked at this chart and determined that the grey boxes were the range to watch for. The close yesterday was towards the upper end of the upside grey box, and today we saw price action fall back below it. We can mark this as a failed breakout for the time being.

The trend lately has been to bounce between the two grey boxes. Does that mean we are headed back for 7420?

There are a lot of mixed signals in the market right now. On one hand, you have a daily chart that is showing resilience and is managing to make higher highs. On the other hand, you have the shorter timeframe charts being a choppy mess that really highlight the failed rallies. Aside from yesterday, most of those daily candle highs from the past 4 candles have long wicks to the upside.

As of writing this, big tech earnings have not kicked off with a bang. GOOGL and TSLA are currently both in the red after hours and if this pours into tomorrow, we could see further downside pressure.

The key levels yesterday were 7420 and 7580. That hasn’t changed as we head into tomorrow. The market lacks a sense of direction right now. Mixed signals is never a good thing, because a healthy trend doesn’t give you any doubts.

We are heading into the final 2 trading days of the week, and a lot of the expected move is still to be covered. Let’s hope for some more volatility!

Good luck!